Monday, November 30, 2009

I have a feeling that there will be another down trend in the equity markets shortly.
you'd think a down trend in equities would drag down commodities to, as it did in the crash of 2008. But, i think that because of the severity of the worldwide debt, and massive liquidity ("stimulus", money printing), many commodities that would have usually tumbled will tend to have minimal downward movement, remain unscathed, or actually make gains. When the markets start a downtrend, investors are leaving equities and looking for a safer investment, typically the US Dollar, but because of its instability I think that investors will search for something else, a physical asset to preserve their wealth.